Stéphane Boujnah: the dealmaker bent on building an EU capital markets empire

Nov 12, 2021

First Read

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Hits & Takes
John Lothian & JLN Staff

Erika James has been appointed to Morgan Stanley’s board of directors. James is the first woman and first person of color to become dean of The Wharton School. She is also the first woman of color to sit on the Morgan Stanley board. — Morgan Stanley.

FairX has set the following daily records of contracts traded since launch:
28 Jun: 540
19 Jul: 1,572
27 Aug: 4,281
22 Sep : 6,001
04 Oct : 8,759
10 Nov: 14,016

The notional open interest of MSCI China A 50 Connect (USD) Index Futures at HKEX has surpassed US$1 billion, Kevin Rideout of HKEX shared on LinkedIn.

The Nodal Exchange has posted a new open interest record this week, surpassing 160,000 contracts in its environmental markets suite. Nodal’s open interest in environmental markets, reached 160,230 contracts on November 9, 2021 on Nodal and is up over 80% YTD. — LinkedIn

The FINRA Foundation Dissertation Completion Fellowship program is seeking to expand the pipeline of researchers from racial and ethnic backgrounds whose underrepresentation in the U.S. professoriate has been severe and longstanding. To achieve that goal, the FINRA Foundation Dissertation Completion Fellowship will provide an award of up to $40,000 to advanced doctoral candidates within their last year of Ph.D. dissertation writing to support completion of their dissertation research and writing. The application deadline is December 17, 2021 and the notification is March 2022 for the fellowship year of June 1, 2022 – May 31, 2023. Click HERE for more details.

On November 18, 2021 at 12 p.m. EST, IBKR Webinars is holding an event about the career of Cboe’s Catherine Clay titled “Making Her Mark: Catherine Clay, Leading with Ambition in Global Data & Analytics.”

The Georgetown University McDonough School of Business Center for Markets and Policy Financial Markets Quality Conference will be held on November 16 to 18 and their agenda is out. Click HERE for more details and to register.

Ray Pellecchia, senior director, strategic communications at Financial Industry Regulatory Authority (FINRA) was among the group of employees included in the FINRA 2021 Award of Distinction Honorees. — LinkedIn

There were no new donations to the JLN MarketsWiki Education GoFundMe campaign yesterday. We have not pulled the winner for the raffle for a free video production from John Lothian Productions yet. The raffle ended in October. We will be announcing this on Monday.

Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL


The World Federation of Exchanges‘ regulatory affairs team has been running a series of videos during COP26 on the industry’s responses to climate issues currently under discussion in Glasgow. Today’s focus is on the Luxembourg Stock Exchange, which is part of the Net-Zero Financial Services & Providers Alliance. In the presentation, the LuxSE says market infrastructure providers have a crucial role to play in the transition to a low-carbon and more inclusive economy. Watch it here.~SC


FIA Expo 2021 Video: Trading Technologies’ Execs Say Deal Was Good For Industry

It was nearly a week after Trading Technologies announced it would be acquired by the private equity firm 7RIDGE, along with its limited partners Cboe Global Markets, Inc. and the Singapore Exchange, but the company’s top executives were still celebrating.

Interviewed together at the FIA Expo last week, Tim Geannopulos, chairman and CEO of Trading Technologies, and Keith Todd, incoming CEO of TT and current chairman and CEO of KRM22, were positively giddy with excitement about the deal.

Watch the video »


How SARS-CoV-2 in American deer could alter the course of the global pandemic
Michaeleen Doucleff – NPR
Scientists have evidence that SARS-CoV-2 spreads explosively in white-tailed deer and that the virus is widespread in this deer population across the United States. Researchers say the findings are quite concerning and could have vast implications for the long-term course of the coronavirus pandemic. Since SARS-CoV-2, the coronavirus that causes the disease COVID-19, first emerged, there have been several signs that white-tailed deer would be highly susceptible to the virus — and that many of these animals were catching it across the country.

***** This is not good news. It is an important read.~JJL


Central Bankers Are Blowing Up Macro Hedge Funds; Policy makers have roiled bond markets, making life tricky for fixed-income traders.
Mark Gilbert – Bloomberg
Some of the most storied names in the hedge fund firmament are nursing staggering losses after bond yields whipsawed in recent weeks. Central bankers would do well to acknowledge that market dislocation doesn’t just afflict financial players; with borrowing costs generally jumping around in a haphazard fashion, their recent communications failures pose real risks to the real economy.

***** I am sure the hedge fund managers are also doing their part in blowing up their funds. The object is not to win, it is to stay in the game. That is winning. ~JJL


Americans Need to Learn to Live More Like Europeans; Supply-chain shortages are constraining U.S. consumers’ endless appetite for buying whatever they want whenever they want. It’s about time.
Allison Schrager – Bloomberg
It’s become the conventional wisdom that the U.S. economy is built on Americans’ endless appetite to buy lots and lots of stuff. Household consumption makes up about 67% of GDP. When the economy falters, we’re told spending is our patriotic duty. But suddenly, Americans can’t spend like they used to. Store shelves are emptying, and it can take months to find a car, refrigerator or sofa. If this continues, we may need to learn to do without — and, horrors, live more like the Europeans. That actually might not be a bad thing, because the U.S. economy could be healthier if it were less reliant on consumption.

***** If it involves eating quiche, count me out.~JJL


‘Better Happens Together’ for SGX Cares beneficiaries as Bull Charge Charity Run concludes fundraising for the year
18th Bull Charge Charity Run draws over 4,000 participants virtually from around the world; SGX presents cheque for more than S$2 million to SGX Cares beneficiaries; SGX Cares beneficiaries were the winners as the 18th annual Bull Charge Charity Run concluded Singapore Exchange’s (SGX) fundraising efforts for the year.
At a ceremony at SGX Centre today, a cheque for S$2,060,888 was presented to Community Chest, which will channel all proceeds to the adopted SGX Cares beneficiaries for 2021: AWWA Ltd., Autism Association (Singapore), Fei Yue Community Services, HCSA Community Services and Shared Services for Charities.

***** That is a lot of bull charging for the best reasons.~JJL


Thursday’s Top Three
Our top story Thursday was Griffin promises to bankroll a Pritzker challenger, from Crain’s Chicago Business, about the billionaire Ken Griffin’s hatred of the Illinois governor. Second was Hedge Fund 2-and-20 Fee Structure in SEC Chief’s Crosshairs, from Bloomberg via Yahoo Finance. Third was The Unemployed Trader Who Became a $700 Million Exile, from Bloomberg, which was our top story Wednesday.


MarketsWiki Stats
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MarketsWiki Statistics


Lead Stories

Stéphane Boujnah: the dealmaker bent on building an EU capital markets empire; Euronext has set out plans to break the mould with its EUR4.4bn purchase of Borsa Italiana following deals in Dublin and Oslo
Philip Stafford – FT
Europe is often the graveyard of the ambitions of executives who try to build empires out of its fragmented capital markets. Under the umbrella of the EU’s single market, the business of buying, selling and settling of securities is run largely on national lines. Megadeals, such as Deutsche Börse’s attempts to merge with London Stock Exchange Group, have hit the antitrust buffers in Brussels.

Another Bitcoin Futures ETF Bites the Dust; Costs ended plans for launch of new crypto fund; move follows October cancellation by Invesco
Michael Wursthorn – WSJ
A second firm has halted the launch of a bitcoin futures exchange-traded fund, calling the products too costly for many investors. Bitwise Asset Management late Wednesday withdrew its proposal to roll out a bitcoin ETF this month, the company said in a regulatory filing. Matt Hougan, Bitwise’s chief investment officer, said the fund would have faced a number of fees and added expenses tied to rolling futures contracts from one month to the next, as well as supply problems within the futures market itself.

How Crypto Wallets Fit Into Investors’ Pockets; A coming wave of companies providing accounts for digital assets could reorder the consumer crypto landscape
Telis Demos – WSJ
More players are beginning to arrive in the world of digital assets. Investors will have to think about what it means for their wallets—and for wallet stocks. At the beginning of a person’s journey into the world of cryptocurrencies such as bitcoin, “wallet” often refers to what a traditional bank or brokerage account already does: hold a customer’s assets. It is a basic building block of crypto finance’s future. A wallet can be attached to an exchange for trading, used to make purchases with crypto, or to help access the world of nonfungible tokens and decentralized finance, or “DeFi.”

Even JPMorgan Can’t Escape All the Job Quitters; It’s not just lower-wage workers leaving their positions for better pay. Wall Street traders are on the move, too, in a sign the labor market is tightening.
Brian Chappatta – Bloomberg
It’s not quite Wall Street’s version of the “Great Resignation” — but it’s not too far off, either. JPMorgan Chase & Co.’s equity derivatives desk has faced a wave of defections this year, part of a growing trend across the financial industry, Bloomberg News’s Hannah Levitt reports. Unlike many Americans leaving their jobs, JPMorgan’s senior executives had positions lined up at rival powerhouses like Bank of America Corp., Citigroup Inc. and Millennium Management. But, like workers in other industries, bankers are increasingly basing their career decisions on more than just money. After more than a year of the Covid-19 pandemic, flexible lifestyles are in demand.

Hospitals in Western U.S. Under Siege as Covid-19 Packs ICUs
Jonathan Levin and Vincent Del Giudice – Bloomberg
Intensive-care beds are filling up in Colorado, other states; ‘It’s hard to believe we are so far into the pandemic.’
Hospitals in some parts of the U.S. are already starting to see the impact of an autumn wave of Covid-19 infections, the latest sign that the health-care system still faces serious pressure from the virus, even in places that have achieved relatively high vaccination rates.

After Copper Chaos, LME Mulls Rules to Keep From Running Out of Metal
Jack Farchy – Bloomberg
The London Metal Exchange is considering whether it should sometimes block traders from withdrawing inventory from its warehouses, in order to guard against running out of metal entirely. Such a move would mark a significant shift in philosophy for the 144-year-old LME, which has long trumpeted its role as a “market of last resort” — into which producers can deliver unwanted metal in times of glut, and to which consumers can turn for supplies in times of scarcity.

Erika James Elected to Morgan Stanley Board of Directors
Morgan Stanley
Morgan Stanley (NYSE: MS) today announced that Erika James has been elected to the Company’s Board of Directors, effective January 1, 2022. Ms. James, 52, is the Dean of the Wharton School at the University of Pennsylvania. Prior to this, she was the John H. Harland Dean at Emory University’s Goizueta Business School from 2014 to 2020.

NFA Announces Nominations Made by the 2021 Nominating Committee
In accordance with NFA Bylaw 406, the Office of the Secretary has received from the 2021 Nominating Committee a list of its nominees for positions on NFA’s Board of Directors and 2022 Nominating Committee. The list of nominees included with this Notice shall serve as notification to NFA Members of the candidates proposed by the 2021 Nominating Committee.

Bitwise Withdraws Bitcoin Futures ETF Filing, Citing Cost, Complexity
Tanzeel Akhtar – Coindesk
Bitwise Asset Management has withdrawn the application for its Bitcoin futures exchange-traded fund (ETF) citing what it said are the cost and complexity of such ETFs. The company will instead focus its efforts on its spot bitcoin ETF filing already in the pipeline.

MEMX asks SEC to reject ‘deeply flawed’ proposed changes to US equities data fees; According to the members exchange, the proposed changes to fees are subject to a conflict of interest and would further cement incumbent venues monopoly over market data.
Annabel Smith – The Trade
MEMX’s head of market structure, Adrian Griffiths, has asked the Securities and Exchanges Commission (SEC) to disapprove amendments to securities information processor (SIP) data fees proposed by various SIP operating committees. The amendments – submitted on 5 November – come as part of the SEC’s latest set of governance changes to its National Market System (NMS) Plan.

Wall Street Is Offering 8-Figure Pay Packages to Woo Top Talent
Hannah Levitt – Bloomberg
The trading desk was just embarking on a second banner year when senior executives started defecting to the likes of Bank of America Corp., Citigroup Inc. and Millennium Management. By this fall, many of the team’s heaviest hitters had gone.

FTX to Expand Miami Office as Crypto Jobs Gravitate to Florida
Jonathan Levin – Bloomberg
Exchange plans permanent space for 18 employees, up from 4; Development VP Dabir sees real estate as part of crypto future
FTX US is expanding in Miami, where the cryptocurrencies exchange already owns the naming rights to the Miami Heat basketball arena. The company is building a permanent space with capacity for 16 to 18 employees in the Brickell financial district, an increase from the four people now in a temporary office nearby, Avinash Dabir, FTX US’s vice president of business development, said in an interview.

AQR hedge fund parts with 5 top managers and closes struggling division; Assets have declined by almost half to $137bn at computer-powered investment group
Robin Wigglesworth – FT
Computer-powered hedge fund group AQR Capital Management is to remove five partners from its ranks and trim its bond arm, continuing to retrench operations after several lean years for many systematic trading strategies.

Former JPMorgan Exec Says Bank Fired Her for Raising Compliance Concerns; Shaquala Williams said she had concerns about whether the bank violated terms of settlements with U.S. agencies
Dylan Tokar – WSJ
A former JPMorgan Chase & Co. compliance executive has sued the bank for retaliation, saying it fired her after she pointed out gaps in its anticorruption controls and raised concerns about what she believed were misrepresentations to regulators. Shaquala Williams, a former JPMorgan vice president, said in a lawsuit filed Thursday that among her concerns was whether the bank’s conduct violated terms of settlements it reached with the U.S. Justice Department and the U.S. Securities and Exchange Commission in 2016.

Prime broking braced for new era after Archegos collapse; Credit Suisse’s decision to exit the business highlights how the industry that serves hedge funds is changing
Owen Walker and Laura Noonan – FT
On an overcast morning in early 2016, the then Irish Taoiseach Enda Kenny opened Credit Suisse’s new trading floor in Dublin and declared that the city had joined “a small club of trading locations worldwide”.

Sweden no longer stands out in pandemic, says architect of ‘no lockdown’ policy; Anders Tegnell remains unapologetic about country’s early Covid strategy as commission investigates response
Richard Milne – FT
Sweden no longer stands out in the pandemic, according to the country’s chief epidemiologist who championed its unique approach in the early phase of the crisis, as the Scandinavian nation prepares for a rise in new cases and hospitalisations.

From climate change to biodiversity: Beyond the ESG buzz words; As COP 26 draws to a close and in a week where the first sustainability initiative in the trading space was launched, we look at the role asset managers can play in the climate urgency along with the standards and data needed to support the journey.
Charlotte Decuyper – The Trade
With COP 26 coming to a close in Glasgow, and the climate urgency intensifying, the importance of the role financial services will have to play in supporting the transition to a more sustainable future is only now becoming apparent. But what impact will this new role have? Aviva recently announced it will stop investing in and insuring coal companies by 2022 unless they commit to science-based targets. With only two months to the deadline, such commitments raise once again the importance of access to accurate relevant data in environment, social and governance (ESG) in the decision-making process.


Norway Plans Extra Shot for All Adults After Infection Spike
Stephen Treloar – Bloomberg
A jump in Covid-19 infections is prompting Norway to roll out a third dose to everyone over 18 years old and will consider allowing a wider use of vaccine certificates by municipalities to stamp out regional outbreaks.

Dutch face three-week, partial lockdown as COVID-19 cases soar
Bart H. Meijer – Reuters
Bars and restaurants will close early and sporting events will be held without audiences under a three-week, partial lockdown that is expected to be announced in the Netherlands on Friday evening.

COVID-19’s epicentre again: Europe faces fresh reckoning
Josephine Mason and Emilio Parodi – Reuters
Europe has become the epicentre of the pandemic again, prompting some governments to consider re-imposing unpopular lockdowns in the run-up to Christmas and stirring debate over whether vaccines alone are enough to tame COVID-19.

Sri Lanka Tightens Virus Curbs on Gatherings Ahead of Protest
Anusha Ondaatjie – Bloomberg
Organizers of gatherings need approval from health ministry; Protest involves farmers against ban on chemical fertilizer
Sri Lanka is imposing new virus curbs to limit the size of public gatherings, just days before the political opposition planned to hold the first major protest against President Gotabaya Rajapaksa’s government since it swept to power last August.

Germany’s Covid Wave Isn’t Receding as Hospitals Struggle
Tim Loh – Bloomberg
Top officials paint grim picture heading into European winter; Infections have been rising at a record daily pace this week
Germany’s fourth Covid-19 wave is hitting Europe’s biggest economy with full force and there’s no sign of record infections easing anytime soon, according to the country’s top health officials.

Mutation Linked to Remdesivir Resistance Found in Covid Patient
Jason Gale – Bloomberg
Gilead’s drug was the first FDA-approved medicine for Covid; E802D mutation found to reduce the fitness of SARS-CoV-2 virus
Resistance to Gilead Sciences Inc.’s antiviral remdesivir was found in coronavirus samples collected from an immune-compromised patient treated with the drug for a persistent Covid-19 infection, researchers said.

AstraZeneca Plans to Start Selling Covid-19 Vaccines at Profit; After having committed to at-cost vaccines, drugmaker says it will shift toward seeking profit on new orders
Cecilia Butini – WSJ
AstraZeneca AZN -0.35% PLC said it would start pricing its Covid-19 vaccine to make it profitable, ending a period in which it had pledged to roll out the shots at cost during the pandemic. The Anglo-Swedish pharmaceuticals giant said it would shift away from a nonprofit approach to the vaccine starting in 2022, signing new contracts that will allow it to make money off the shot. The company expects some earnings contribution from new orders in the fourth quarter of this year.

Northeastern Chinese port city battles growing COVID-19 cluster
A growing COVID-19 cluster in China’s Dalian has spurred the northeastern port city to limit outbound travel, cut offline school classes and close a few cultural venues after being told by national authorities to contain the outbreak more quickly.

Covaxin, India’s homegrown COVID jab, ‘highly efficacious’: Study; Data from Phase 3 trials show the vaccine offers 78 percent protection against COVID-19, according to findings published in Lancet.
Covaxin, the first COVID-19 vaccine developed in India, is “highly efficacious” and presents no safety concerns, according to a study published in the medical journal Lancet.

Why experts say COVID threat looms with winter; Experts say several factors is likely driving the U.S.’s recent COVID uptick.
Arielle Mitropoulos – ABC
State and local health officials are once again raising the alarm about the renewed threat of COVID-19 spread in communities across the country as people head indoors during the colder months and are set to gather for the holidays.

UK Covid rates are now falling rapidly despite dire warnings for the winter
Holly Ellyatt – CNBC
The U.K. has had the unenviable title of having one of the worst Covid-19 rates in the world, with cases soaring in recent months. But its fortunes appear to be changing.

Vaccines alone won’t end the Covid pandemic, says New Zealand former prime minister
Yen Nee Lee – CNBC
Covid-19 still spreading globally and a “vaccine-only” strategy won’t bring the pandemic to an end, former New Zealand Prime Minister Helen Clark said Thursday. The World Health Organization sounded the same warning last year, when the world was just months into the Covid pandemic.

Austria to put millions of unvaccinated people in Covid lockdown; Germany also plans tighter restrictions as infections in both countries reach record highs
Samantha Lock and agencies – The Guardian
Austria is set to place millions of people not fully vaccinated against Covid-19 in lockdown in a matter of days while the German government said it planned to tighten restrictions, as infections in both countries soar to record highs and intensive care units face an increasing strain.

New clues to the biology of long COVID are starting to emerge
Rob Stein – NPR
Kelly LaDue thought she was done with COVID-19 in the fall of 2020 after being tormented by the virus for a miserable couple of weeks. “And then I started with really bad heart-racing with any exertion. It was weird,” says LaDue, 54, of Ontario, N.Y. “Walking up the stairs, I’d have to sit down and rest. And I was short of breath. I had to rest after everything I did.”

Booster shots are most popular in poorly vaccinated states where coronavirus rages
Dan Keating, Fenit Nirappil and Katie Shepherd – Washington Post
Several northern, mostly rural states that are battling coronavirus surges with few mask mandates and low vaccine rates are now leading the nation on another preventive front: booster shots.

Not Vaccinated? Prepare to Pay as Governments Ready Crackdowns
Anne Pollak – Bloomberg
As the latest Covid-19 wave flares up, countries are starting to take a tougher stance toward those who haven’t been vaccinated. From sending those without shots into lockdown, to forcing them to pay their own Covid medical bills, here are some of the steps being taken to try to encourage more people to get immunized.

Exchanges, OTC and Clearing

Nasdaq launches options on the OMX Stockholm 30 ESG Index; New options align with Nasdaq’s objective to address the increasing demand for more sustainable investment solutions.
Wesley Bray – The Trade
Nasdaq has launched options contracts on the OMX Stockholm 30 ESG index, as it looks to expand its ESG derivatives offering. Nasdaq’s suite now includes both options and futures contracts based on the ESG benchmark index, which since its launch in June 2018, has grown into one of the most traded indexes in Europe.

The Federation of Euro-Asian Stock Exchanges holds 33rd Extraordinary General Assembly Meeting in Yerevan, Armenia
Today, the Federation of Euro-Asian Stock Exchanges (FEAS) announces the 33rd Extraordinary General Assembly meeting in Yerevan, Armenia. This is the first FEAS in-person gathering after the Covid-19 global outbreak. Taking into consideration the global situation, the event is organized in a hybrid format. The executives of the FEAS Member stock exchanges and depositories from around 12 countries visited Armenia, other members joined the event through the Zoom platform.

Nasdaq Launches Retail Trading Activity Tracker, Available via Nasdaq Data Link
Nasdaq, Inc.
Nasdaq (Nasdaq: NDAQ) today announced the launch of the Retail Trading Activity Tracker, a new dataset that provides reliable information into the trading activity of self-directed retail investors in the U.S. equity market. The Retail Trading Activity Tracker tracks stocks and exchange traded funds (ETFs) traded by individuals as well as buy/sell ratios per ticker on a daily basis. A free version of the tracker with the daily top ten most traded stocks and ETFs by share of retail activity will be available on Nasdaq Data Link and

MIAX Options Exchange – Interface Specification Update To Support Complex Stock Tied Orders Up To 4 Decimal Places
The MIAX Options Exchange has published an updated Fix Order Interface (FOI) Specification supporting Complex Stock Tied Orders with a net price of up to 4 decimal places. MIAX Options plans to activate this change early in the first quarter of 2022, pending SEC approval. Firms are encouraged to ensure conformance to the MIAX Options’ market data specifications existing support of prices to 4 decimal places. Complex Orders without Stock and Simple Orders will continue to support prices of up to 2 decimal places.

Beijing Stock Exchange clears companies to list on Nov 15 -filings
China’s new Beijing Stock Exchange has approved applications from 10 companies to list shares on Nov. 15, company filings showed late on Wednesday, two months after Chinese President Xi Jinping announced the bourse for small and medium-sized firms.

Cofle S.p.A. lists on Euronext Growth Milan
Twenty-eighth listing of 2021 on Euronext Growth Milan; Cofle S.p.A. brings the total number of companies listed on Euronext Growth Milan to 159; Total placement volume of the offering equal to EUR17.2 million
Milan – 11 November 2021 – Borsa Italiana, part of the Euronext Group, today congratulates Cofle S.p.A. on its listing on Euronext Growth Milan.
Cofle S.p.A. is a multinational company specialising in the design, production and worldwide marketing of cables and remote control systems for off-road vehicles, the luxury automotive sector and the automotive aftermarket.

The Social Chain AG is now in the Prime Standard of the Frankfurt Stock Exchange
Deutsche Börse Group
The Social Chain AG (ISIN: DE000A1YC996 ) has been listed in the Prime Standard of the Frankfurt Stock Exchange since today . The company was previously included in the quotation board . The IPO was accompanied by Berenberg. Baader Bank and Hauck & Aufhäuser act as Designated Sponsors in Xetra trading. Baader Bank is the specialist at the Frankfurt Stock Exchange.

Total Trading Value of “CONNEQTOR” Exceeds 100 Billion Yen!
Tokyo Stock Exchange, Inc. (hereinafter referred to as “TSE”) launched its RFQ (Request For Quote) platform, CONNEQTOR, in February of this year with the aim of improving liquidity in the ETF market. We are pleased to announce that the trading value via CONNEQTOR has surpassed 100 billion yen since the service was launched.

Tech Companies from Silicon Valley to Sao Paulo Celebrate New Listings at the NYSE
Farrell Kramer – NY SE
The street just outside the New York Stock Exchange was transformed into a neighborhood block party early this week as Nextdoor made its market debut, part of a flurry of activity that saw multiple technology companies list their shares and concluded with a moving trading floor tribute on Veterans Day.

— Performance Bond Requirements: Agriculture, Energy, Interest Rate Margins – Effective November 12, 2021 — CME
— Performance Bond Requirements: Agriculture, Energy and Interest Rate Margins – Effective November 12, 2021 — CME
— Product Modification Summary: Option Assignment Processing Modification on Thanksgiving Holiday (November 25, 2021) — CME


Seasoned Wall Street Exec Says It’s Time for the Black Community to Begin Using the Market to Get Rich, Creates Robo-Investing App
Atlanta Black Star
As a senior leader with an investment firm, Trevor Rozier-Byrd was a rare Black Wall Street executive. In fact, he held that position at one of the world’s largest investment firms: State Street Corp. With 20 years of experience in the asset management industry under his belt, Rozier-Byrd is now bringing his business and investment expertise to Stackwell, his robo-investing app specifically targeted to African-American investors in the U.S. The app is slated to launch in early 2022.

Wirecard Chapter Ends With Stock Set to Delist From Exchanges
Jan-Patrick Barnert – Bloomberg
Market value is a fraction of its $27 billion at stock’s peak; Shares kept trading after company filed for bankruptcy
Wirecard AG’s shares face the end of their life on Germany’s main exchange, with the collapsed payment processor set to delist in Frankfurt next week.

big xyt and ETFbook partner to improve transparency in European ETF/Ps; New partnership plans to make it easier to identify available products across any segment or exposure.
Wesley Bray – The Trade
Market data provider big xyt has partnered with ETFbook to provide daily fund data for its Liquidity Cockpit for ETFs solution. Originally launched in 2017, the solution provides a view of security metrics for global exchange traded funds (ETFs), obtained from various sources, summing up national regulated trading venues, multilateral trading facilities (MTFs) including Request for Quote (RFQ) volume, and OTC/SI reported transactions.

BestEx Research appoints industry veteran as managing director of business development; Incoming director brings over 15 years’ experience in electronic trading and transaction cost analysis.
Wesley Bray – The Trade
BestEx Research Group has appointed an industry veteran to be its new managing director of business development as the firm looks to expand its futures business. Hector Robles will take on the role, joining from RCM-X where he oversaw the distribution of its algorithmic and quantitative trading products.


The U.S. and Russia might finally be making a little cybersecurity progress.
Justin Sherman – Slate
In October, the U.S. and Russia did what many thought was unthinkable: They jointly signed a cyber norms agreement. Submitted to the U.N. General Assembly, the three-page document outlined, for the first time, some general cyber principles on which the countries nominally agree.

“Password” Isn’t A Password, And Other Cybersecurity Mistakes
Lee Mangold – Forbes
Every day we’re inundated with news reports about the latest high-profile hack or malware outbreak. We hear how companies get shut down or have to pay large sums of money just to get their own data back. We read these articles like thriller novels — eager to hear how the events unfolded and what the victims had to go through.
Unfortunately, while usually newsworthy, these reports almost always lack many details. However, they often share one common theme: The victim was said to be the target of a “sophisticated” attack.
I’m here to tell you that’s probably not true.

NIST Releases New “Cybersecurity Framework Profile for Ransomware Risk Management” to Battle Growing Threat of Ransomware Attacks
Faegre Drinker Biddle & Reath LLP – JDSupra
Ransomware incidents continue to be on the rise, wreaking havoc for organizations globally. Ransomware attacks target an organization’s data or infrastructure, and, in exchange for releasing the captured data or infrastructure, the attacker demands a ransom. This creates a dilemma for organizations — the decision to pay the ransom, relying on the attacker to release the data as they say, or to reject the ransom demand and try to restore the data or operations on their own.

Cybersecurity education company touts 3 to 6 month program for unemployed veterans
Jonathan Greig – ZDNet
Cybersecurity education company Cybint is doing its part to address veteran unemployment — which stands at 11% right now — and the cybersecurity talent shortage through a new 3 to 6 month program that trains novices in all things security.
Texas has more than 42,000 open cybersecurity positions, one of the highest rates in the country. Cybint is partnering with universities and colleges like Houston Baptist University to offer the Cybint cybersecurity bootcamp to military and veteran students.


How Binance Became the World’s Biggest Crypto Exchange; The trading platform surged by operating from nowhere in particular—without offices, licenses or headquarters. Now governments are insisting on taking some control.
Patricia Kowsmann – WSJ
The world’s fastest-growing major financial exchange has no head office or formal address, lacks licenses in countries where it operates and has a chief executive who until recently wouldn’t answer questions about his location. Started just four years ago, Binance is the exchange giant that towers over the digital currency world, a crypto equivalent of the London, New York and Hong Kong stock exchanges combined. After a burst of growth, Binance processes more trades for cryptocurrencies such as bitcoin and ether each day, $76 billion worth, than its four largest competitors put together, according to data provider CryptoCompare.

Need an Inflation Hedge? Bitcoin Has Delivered 99.996% Deflation
Vildana Hajric – Bloomberg
There is no linkage with Fed actions, Duke professor says; Hedging component is rising, Bloomberg Economics estimates
On Wednesday, U.S. inflation data came in much hotter-than-expected. Almost immediately after the number hit the wires, Bitcoin notched a record high. Coincidence? To many, it’s not so much a chance happening as something they’d been predicting for a long time now — that the world’s largest digital asset makes for a great hedge against rising prices in the economy.

Coinbase Stock Is Tumbling Because No One Traded Cryptos Last Quarter
Avi Salzman – Barron’s
Coinbase Global stock was slumping after the company’s third-quarter earnings and revenue missed analysts’ expectations amid a slowdown in crypto trading in the third quarter. Coinbase (ticker: COIN) revenue of $1.3 billion fell short of analysts’ expectations for $1.6 billion and its earnings per share of $1.62 were below estimates of $1.81. Coinbase has benefited from the rise in the value of and both of which recently hit new record highs.

Binance Freezes Doge Withdrawals as Users Report Being Asked to Return Coins They Don’t Have
Muyao Shen, Anna Baydakova – Coindesk
Binance has temporarily suspended withdrawals of DOGE following an upgrade, the company said Thursday. “We discovered a minor issue with DOGE network withdrawals on Binance after carrying out a version update on 2021-11-10,” Binance said in a post on Thursday morning without specifying what the “minor issue” was. “As a result, we have temporarily suspended DOGE network withdrawals until this issue is resolved. Binance is actively working with the DOGE project team to resolve the issue.”

The World’s Largest Record Company Is Creating an NFT Super Group; Kingship, consisting of four virtual apes, reimagines the idea of a band — and a brand
Lucas Shaw – Bloomberg
The world’s largest music company has created a band of four virtual apes. If that sentence makes you question your sanity — or the state of western civilization — you aren’t alone. Universal Music Group NV is combining two hot digital concepts that you’ve likely read about in the past year: nonfungible tokens (NFTs) and the metaverse, Thanks to the appreciation of cryptocurrencies and some very famous boosters, like Elon Musk and Mark Zuckerberg, they have gone from esoteric to ubiquitous in just a few months.

JPMorgan Team Suggests Crypto’s DeFi Boom Slower Than It Seems
Joanna Ossinger – Bloomberg
JPMorgan studied decentralized finance on Ethereum network; DeFi growth in dollar terms flattered by 540% Ether price jump
The expansion in decentralized finance, one of the most-touted cryptocurrency trends, is less explosive than at first glance, according to an analysis by strategists at JPMorgan Chase & Co.


Pritzker: Voters don’t want Ken Griffin’s ‘puppet’ in office; The Democratic governor unloads on the Republican hedge fund mogul in an escalating battle of the billionaires.
Greg Hinz – Crain’s Chicago Business
The battle of the billionaires is on as Gov. J.B. Pritzker today swatted down criticism from Chicago hedge fund mogul Ken Griffin, saying voters don’t want Griffin’s “puppet” in the governor’s mansion.

Don’t Expect Powell Vs. Brainard on Fed Bank Rules; Political drama aside, there’s general agreement on the central bank’s financial oversight.
Paul J. Davies – Bloomberg
Banking regulation is a grind. It’s all endless details and complexity. To make people care, the drama sometimes has to be manufactured. Expect much of that around the speculation that Federal Reserve board member Lael Brainard may soon succeed Randal Quarles as the central bank’s vice-chair for financial supervision, or even take over from Jerome Powell as chair.

Anti-Woke ETFs Are Pitching to Conservatives Mad at Corporate America; Politics and investing don’t normally mix. But 2ndVote Advisers is the latest attempt to change that.
Joshua Green – Bloomberg
Dan Grant is fed up with “wokeness.” He’s sick of such companies as Nike Inc. and Coca-Cola Co. taking liberal positions on social justice issues. “People are tired of woke companies, tired of wokeness overall, and tired of companies putting their social justice activism ahead of generating profits for their shareholders,” Grant says, sitting in a small Nashville office festooned with dinosaur fossils and a pet Australian snake-necked turtle named Melvin.

U.S. Warns Europe That Russia May Be Planning Ukraine Invasion
Alberto Nardelli, Jennifer Jacobs, and Nick Wadhams – Bloomberg
Officials briefed EU, didn’t share information, people say; U.S. says it’s watching Russian military buildup near Ukraine
The U.S. is raising the alarm with European Union allies that Russia may be weighing a potential invasion of Ukraine as tensions flare between Moscow and the bloc over migrants and energy supplies.


U.S. SEC chair Gensler seeks to scrutinize private fund fee arrangements, ‘side letter’ provisions
Katanga Johnson – Reuters
The chair of the U.S. Securities and Exchange Commission (SEC) said on Wednesday that the agency will consider new rules that scrutinize how private funds charge investors and measure performance.

U.K. Hands Out £600,000 Broker Fine Linked to Tax Scandal
Jonathan Browning – Bloomberg
FCA hands out second penalty in relation to Cum-Ex tax scandal; Watchdog says Sunrise Brokers cooperated with investigation
The U.K. markets regulator handed out its second penalty in relation to Cum-Ex trades, fining a broker more than 600,000 pounds ($803,500) for missing suspect trades with one of the key figures in the European tax scandal.

Basel Committee finalises revisions to market risk disclosure requirements and voluntary disclosure of sovereign exposures
Revisions to market risk disclosure requirements reflect changes to the minimum capital requirements for market risk published in January 2019; Voluntary disclosure standards for sovereign exposures set out templates for banks when disclosing their sovereign exposures and risk-weighted assets; The revised market risk disclosure requirements come into effect on 1 January 2023.
The Basel Committee on Banking Supervision has today issued revisions to its market risk disclosure requirements to reflect changes to the Minimum capital requirements for market risk published in January 2019.

FCA fines Sunrise Brokers LLP £642,400 for serious financial crime control failings in relation to cum-ex trading
Sunrise Brokers LLP has been fined over £600,000 for deficient anti money laundering systems and controls. This is the second case brought by the FCA in relation to cum-ex trading, dividend arbitrage and withholding tax (WHT) reclaim schemes. The first FCA case relating to cum-ex trading concluded in May 2021.

Consumer warning on Marvell Enterprises Ltd
We have removed Marvell Enterprises Ltd’s permissions. It is therefore no longer authorised to carry out any regulated activities. Marvell may have been offering investments which were not protected.

Statement on Digital Regulatory Co-operation Forum inquiry
On 2 November 2021, the FCA as a member of the Digital Regulatory Co-operation Forum (DRCF), gave evidence to the Lords Communication and Digital Committee inquiry into Digital Regulation. The FCA together with the ICO, the CMA and Ofcom highlighted how cooperation across regulators is vital for better clarity and transparency, making it quicker and easier for people and businesses to engage with digital regulation. By regulators working together, we can build a comprehensive view of digital developments and develop strategic responses in the public interest.

Pursuit of ‘competitive’ regulation makes unwelcome return in UK; Financial crisis showed up perils of having watchdog that was more cheerleader than disciplinarian
Helen Thomas – FT
Bad ideas don’t die. They merely hibernate. That’s the lesson from the revival of the notion that regulators should have a specific objective to consider the competitiveness of the UK financial services industry internationally when setting rules.

ASIC cancels the AFS licence of Future Asset Management International
ASIC has cancelled the Australian financial services (AFS) licence of Future Asset Management International Ltd (FAMI), effective 5 November 2021. ASIC cancelled the licence because FAMI is in liquidation.

2022 and First Quarter of 2023 Report Filing Due Dates
To assist members in their financial reporting obligations, FINRA is issuing this Notice to provide the due dates for Annual Report, Financial and Operational Combined Uniform Single (FOCUS), Form Custody, and supplemental FOCUS Report filings that are due in 2022 or the first quarter of 2023.1 FINRA reminds members that all such filings they submit to FINRA must be made electronically through FINRA Gateway.

Investing and Trading

Earn 7.12% Risk-Free on Your Savings, No Crypto or Junk Bonds Needed
Emily Cadman – Bloomberg
Low-risk saving just got considerably more lucrative. Forget cryptocurrencies and junk bonds, individuals can now get a whopping 7.12% direct from the U.S. government. That’s the new rate for Series I savings bonds bought from the U.S. Department of Treasury from now through April 2022 — the second highest ever offered.

Really, Truly, Holistically, the Stock Market Is Expensive; A fresh attempt to redesign the flawed mechanics of equity valuation still suggests the U.S. is as pricey as it was in 1929.
John Authers – Bloomberg
A Feather in the CAPM
Armistice Day, or Veterans Day, is a great time to pause and take stock. The U.S. Treasury market closes for the day, so there’s no risk of hurly burley over inflation and monetary policy. It’s a good opportunity to get out of the short term and look at the very long term, through the lens of one of the most ambitious pieces of research I’ve ever seen. Jacques Cesar of the consultancy Oliver Wyman has spent the last five years working out an alternative to the capital asset pricing model, or CAPM, and he thinks he’s delivered.

Traders Rush to Stock-Options Bets on Tesla and Amazon; With equities near records, many traders have been using options to wager on a continued advance in tech companies
Gunjan Banerji – WSJ
Stock-options activity is hitting a fever pitch, with many traders rushing to bullish bets to profit from a continued advance in everything from technology heavyweights to small companies. Bullish call-options volumes last week hit the highest level since January, when activity touched a record, Cboe Global Markets data show. These contracts give traders the right, but not the obligation, to buy shares of companies at specific prices, by a stated date.

Investment trusts rediscover their roots with a 21st century twist; The listed fund vehicles are financing innovation in clean fuels, space and digital infrastructure
Mary McDougall – FT
Investment trusts seem to be coming full circle. For most of the 20th century, they gradually moved away from their origins as entrepreneurial schemes investing in specific targets, often in Britain’s colonies, to running generalist equity portfolios. Today, they are raising record sums to fund a new wave of innovation in a period of rapid technological change.

Natural-Gas Supply Is Back in Balance, but Prices Are Still Swinging; Unseasonably mild weather is allowing U.S. inventories of the heating fuel to build ahead of winter
Ryan Dezember – WSJ
Mild autumn weather is allowing domestic natural-gas stockpiles to build before furnaces get fired up, allaying fears of winter shortages and sending prices on big day-to-day swings. Natural-gas futures for December delivery closed 5.5% higher at $5.149 per million British thermal units on Thursday. It was the 13th time over the last 34 trading days that prices moved more than 5% up or down. Two days earlier the price went as low as $4.91. Two weeks before that it was $6.22.

The 4% Retirement Rule Is in Doubt. Will Your Nest Egg Last? A well-established strategy for funding our golden years is no longer foolproof. Retirees need to get creative.
Anne Tergesen – WSJ
A longstanding rule of retirement spending is getting a pay cut. But there are ways to ensure the income you receive in your golden years doesn’t take a big hit—if you’re willing to be flexible. Conventional wisdom recommends spending no more than 4% of savings in the first year of retirement and adjusting that amount annually to keep pace with inflation. The math behind that rule is changing as market forecasters predict lower returns ahead, potentially shifting the way that millions save and spend for their later years.

Environmental, Social and Corporate Governance

BlackRock says net-zero pledges among clients have hit critical mass
Debbie Carlson – MarketWatch
At least half of BlackRock’s biggest clients have signed the UN NetZero Alliance or have made some kind of public commitment to sustainability and reduction of their carbon emissions. The NetZero Alliance is a consortium of asset owners that have committed to transition their investment portfolios to net-zero greenhouse gas emissions by 2050. Most of BlackRock’s clients are organizations such as institutions, pension funds and college endowments.

Australia’s Net-Zero Plan Will Only Cut Emissions by a Third
Jason Scott – Bloomberg
Strategy leans on offsets, as-yet-unavailable technology; Proposals are ‘magical thinking,’ Australia Institute says
Australia’s bid to reach net-zero emissions by 2050 will only cut the amount of greenhouse gases being produced in the fossil-fuel dependent nation by a third compared with having no plan at all, according to government modeling.

What’s In a Pledge? COP Declaration Is More Goodwill Than Law
Ellen Milligan – Bloomberg
Negotiators in Glasgow are haggling through the night over the wording of key texts on tackling climate change far into the future. Whether countries will stick to their promises is another question altogether.

COP26: New Draft Calls for Phase-Out of Coal and More Money
Jess Shankleman – Bloomberg
A new draft of the climate pact being debated at COP26 talks in Glasgow on Friday maintains most of the key elements climate-watchers were looking for — though with some tweaks.

Scotland in talks with alliance to end oil and gas production; UK government snubs effort by Europe-dominated Beyond Oil and Gas Alliance to phase out development
Neil Hume and Nathalie Thomas – FT
Scotland is in talks with a Europe-dominated alliance seeking to end oil and gas production that has been snubbed by the UK, host of UN climate talks in Glasgow.

Investment trusts with a greener conscience; Funds differ on what constitutes ESG investing
Faith Glasgow – FT
For green or ethical investors, the investment trust universe can be challenging territory. A far smaller proportion of funds are clearly badged “sustainable” or ESG (environmental, social and governance) than are available among open-ended vehicles.


Hedge Fund Perma Bear Clark Shuts Down Amid Historic Bull Market
Nishant Kumar – Bloomberg
The longest running bull market in history has claimed one of its most high-profile victims. Russell Clark, who has wagered against stocks for much of the last decade, told clients that he is shutting down his eponymous hedge fund after a run of losses. The RC Global Fund he has managed since 2010 lost 2.6% through October this year and was down to about $200 million in assets from about $1.7 billion in 2015, according to investor documents seen by Bloomberg.

Goldman Launches Three More Thematic ETFs Betting on Disruption
Emily Graffeo – Bloomberg
Funds focus on consumer, health, and real estate industries; Firm launched two other ETFs based on similar theme this year
Goldman Sachs Group Inc.’s asset management arm is starting three actively managed exchange-traded funds that aim to profit from companies that will disrupt industries. The Goldman Sachs Future Consumer Equity ETF (ticker GBUY) will look to invest in companies that can appeal to younger consumers. The Goldman Sachs Future Health Care Equity ETF (ticker GDOC) will look for health care companies that are developing new treatments or technologies in areas like genomics, precision medicine, technology-enabled procedures, and digital healthcare.

Hedge funds learn the hard way in bonds shock; Mayfair set should believe policymakers who say it is not their job to look after them
Katie Martin – FT
Few will shed a tear for the travails of the Mayfair set, and nor should they. Of late, many macro hedge fund managers who seek to make money out of big economic and monetary shifts have had what can politely be described as a complete nightmare.


Furious Investors Test China’s Resolve to Crack Down on Property; Real estate developers that relied heavily on China’s $13 trillion shadow banking market are now struggling to repay individual investors.
Bloomberg News
The protest broke out southeast of the Forbidden City. “Open the gates!” the crowd chanted outside a government building where residents can lodge complaints to local authorities.

China Metaverse Stocks Slide After Newspaper Warns Day Traders
Bloomberg News
AVIT and Shenzhen ZQGAME fall after metaverse commentary; Retail traders should avoid “immature” concept: Economic Daily
Stocks linked to the so-called metaverse slumped in mainland China after a local newspaper warned against speculative trading in the nascent concept.

It’s Finally Getting Cold and Europe Doesn’t Have Enough Gas
Rachel Morison and Anna Shiryaevskaya – Bloomberg
Temperatures set to drop in Italy, France from Nov. 22; Gas storage already lower than usual for the start of winter
Europe is set to get its first cold spell of the winter season, putting the continent’s already scant energy supplies under pressure. Temperatures are set to drop starting next week, with parts of Italy forecast to experience weather as much as 2 degrees Celsius below normal. Southern France, Spain and Germany are also forecast to be colder-than-usual, according to The Weather Company. Centrica Plc, the U.K.’s top energy supplier, warned its 9 million customers to prepare for an icy blast that could last as long as six weeks.

Chile’s Old Guard Counts on the Free Market to Save the Economy
Valentina Fuentes and Eduardo Thomson – Bloomberg
Economists say the free market may keep populism in check; Presidential vote may serve as referendum on economic system
Juan Andres Fontaine and Jose De Gregorio have been guardians of Chile’s free-market economy for more than three decades — as central bankers, economy ministers and professors.


What Bosses Really Think About the Future of the Office; C.E.O.s are eager for employees to return — and afraid of alienating those who have grown accustomed to working from home.
David Gelles – NY Times
People think about the office differently now — including the C.E.O.s who for so long kept a watchful eye on which workers were at their desks. Bosses who once relished face time have grown less attached to crowded elevators and overstuffed conference rooms. Executives who got promoted by putting in 15-hour days sitting in Aeron chairs under fluorescent lighting now accept that the workday can sometimes end at 3 p.m. or 11 p.m., depending on what is best for the employee. And C.E.O.s eager to attract young workers are adapting to changing norms, and realizing how nice more flexibility would have been earlier in their careers, when they had young children.

The Awesome Importance of Imagination
David Brooks – NY Times
Plato and Aristotle disagreed about the imagination. As the philosopher Stephen Asma and the actor Paul Giamatti pointed out in an essay in March, Plato gave the impression that imagination is a somewhat airy-fairy luxury good. It deals with illusions and make-believe and distracts us from reality and our capacity to coolly reason about it. Aristotle countered that imagination is one of the foundations of all knowledge.

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